"De minimis" U.S. tariffs exemption for low-value imports ends

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Several countries suspend shipments to U.S.

Several countries suspending shipments to U.S. owed to deficiency of tariff clarity 03:04

An exemption that allowed low-value parcels shipped to the United States to debar tariffs ended astatine 12:01 a.m. Friday, Trump medication officials said.

President Trump signed an executive order suspending what's known arsenic the de minimis exemption late past month. 

At the time, the White House said that would adjacent what it called a "catastrophic loophole" that shippers usage to "evade tariffs and funnel deadly synthetic opioids oregon below-market products" into the U.S.

The exemption applied to parcels valued astatine $800 oregon little and fto overseas retailers vessel inexpensive goods to consumers successful the U.S. tax-free. 

Mr. Trump "is putting an extremity to the proliferation of shippers worldwide that, among different things, deceptively exploit the de minimis privilege successful an effort to evade duties, inspection, and U.S. law," the White House said successful a information expanse outlining the caller policy.

The president "ending of the deadly de minimum loophole volition prevention thousands of American lives by restricting the travel of narcotics and different unsafe prohibited items, and adhd up to $10 cardinal a twelvemonth successful tariff revenues to our Treasury," White House commercialized advisor Peter Navarro told reporters Thursday, the Reuters quality bureau reported.  

But determination volition inactive beryllium a six-month modulation play erstwhile postal work shippers tin take to wage a level work of $80 to $200 per bundle depending connected the state of origin, Reuters said, citing Trump medication officials.

Mr. Trump ended the de minimis loophole for imports from China and Hong Kong successful May. It had allowed retailers specified arsenic Shein and Temu to vessel ultra low-cost apparel and different goods to U.S.-based consumers astatine bargain-basement prices. Shipments from China and Hong Kong relationship for astir de minimis shipments to the U.S., according to the White House.

The exemption's extremity present applies to each nations.

The de minimis proviso was added to the Tariff Act of 1930 respective years aft the instrumentality passed. It was intended to facilitate commercialized by eliminating the administrative load of collecting humble import duties connected low-cost goods. 

The fig of low-value parcels entering the U.S. has surged implicit the past decade. Between 2015 and 2025, that fig jumped from 134 cardinal shipments per twelvemonth to astir 1.4 billion. Customs and Border Patrol was processing much than 4 cardinal de minimis shipments to the U.S. daily, the White House said. 

Retailers specified arsenic Shein and Temu were forced to scramble erstwhile the loophole for imports from China and Hong Kong was suspended China-based Temu halted shipments of Chinese goods to American customers and shifted to lone selling products to U.S. shoppers that could beryllium sourced from the company's U.S. warehouses.

Megan Cerullo

Megan Cerullo is simply a New York-based newsman for CBS MoneyWatch covering tiny business, workplace, wellness care, user spending and idiosyncratic concern topics. She regularly appears connected CBS News 24/7 to sermon her reporting.

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